New York weighs new approach to high childcare costs

ALBANY, N.Y. -- New York may allow the parents of young children to defer a piece of their state income taxes to help cover the cost of child care.

See Full Article

The novel proposal, introduced as legislation this past week in Albany, is intended to address an expense that challenges nearly every family budget but gets far less attention than saving for college or retirement.

"Child care, next to the mortgage, is the biggest expense we have," said Tom Devaney, a grant writer in the Long Island town of Mineola. He and his wife have a 3-year-old son and 6-month-old twin boys. "Anything that can bring down the cost -- even a little -- is going to help a lot of families."

Child care in New York costs more than $10,000 a year on average, rivaling the cost of housing as the largest financial burden on the parents of young children. And compared with other big expenses such as housing, health care or higher education, government does relatively little to help.

The proposal, from state Sen. Daniel Squadron, D-Brooklyn, would allow parents to defer up to $2,000 of their taxes per year to help defray the costs of child care. The taxes would still have to be paid once the child is of school age, but parents would have 10 years to pay the full amount, and no interest would be added.

There would be no income eligibility requirements under the proposal, which would cover traditional day care as well as in-home services such as nannies or baby sitters.

"I'm a parent myself, and we've experienced this. We hear about it from family and friends," said Squadron, who has two children, ages 4 and 2. "Child care is a necessity, and we need to find ways to help people spread out the cost."

The bill, which so far has no opposition, is one of several measures offered this year that attempt to help new parents. Gov. Andrew Cuomo and Democrats in the Assembly and the Senate have offered different proposals to authorize up to 12 weeks of paid family leave to workers caring for a new child or a sick relative.

Child Care Aware, a Washington-based child care advocacy organization, ranks New York as one of the nation's most expensive states for child care, with the average annual cost between $10,000 and $14,000. That's more than the cost of a year's in-state tuition at a state college.

Already, the state subsidizes the cost of child care for 123,000 lower-income families, serving more than 200,000 children. And the federal government also offers a tax credit for child-care costs, mostly for those with low incomes.

But officials in New York say they're not aware of any state using tax deferrals to reduce the burden of paying for child care.

"A lot of parents are paying $200 per week for child care, so it can be a big expense," said Andrea Anthony, executive director of the New York City-based Day Care Council of New York. "It's an innovative way of helping parents."



Advertisements

Latest Canada & World News

  • Travis Vader eligible to apply for 'unescorted temporary absences' as early as next month

    Canada News Toronto Sun
    Convicted killer Travis Vader will be eligible to apply for "unescorted temporary absences" as early as next month. Vader was sentenced to life in prison on Jan. 26, after being found guilty of manslaughter in connection to the 2010 deaths of Lyle and Marie McCann, aged 78 and 77. Source
  • Ex-Hong Kong leader gets 20 months in jail for misconduct

    World News CTV News
    HONG KONG -- A former leader of Hong Kong was sentenced Wednesday to 20 months in prison for misconduct after failing to disclose plans to rent a luxury apartment for his retirement from a businessman applying for a broadcasting license. Source
  • Renewed calls to review assisted death rules following death of Jocelyne Lizotte

    Canada News CBC News
    Advocates and law makers are renewing calls for changes to the rules surrounding doctor-assisted dying after a Montreal man was charged with second degree murder in connection with the death of his long-suffering wife. Michel Cadotte, 55, is accused of killing his wife, 60-year-old Jocelyne Lizotte. Source
  • Canadian attacked with machete in Thailand in stable condition: police

    Canada News CTV News
    CHUMPHON, Thailand - Police in Thailand have arrested two men accused of slashing a Canadian man with a machete while trying to steal a gold necklace from his female companion last week. The Bangkok Post reported in its online edition that Canadian Philip Sullivan, 68, and King Kulkaew of Bangkok had left a restaurant on foot last Wednesday in the southern city of Chumphon when they were followed by a pickup truck. Source
  • Briton compensated after Guantanamo release reportedly a suicide bomber in Iraq

    World News CBC News
    Jamal al-Harith, of Britain, a former inmate at Guantanamo Bay, gestures after his testimony about his time in detention to Europe's top human rights body in Paris, in this Dec. Source
  • Canada's government shouldn't be in the business of policing 'fake news'

    Canada News CBC News
    Worried about the supposed scourge of "fake news" taking over the media ecosystem? Don't worry, the Liberal government is aware of the issue, and they're here to help! Over the last couple of weeks, Canada's government has been sounding the alarm about the growing threat posed by fake news, something that is apparently deserving of federal intervention. Source
  • After a decade, this First Nation has clean tap water — but 71 others don't

    Canada News CBC News
    Makayla McWatch can clearly remember the first time she drank water from a tap at home. For the 12-year-old, it only came last summer. "My mom told me there's this fresh water we could drink. And I was like, 'What?'" she recalls. Source
  • Do we still need 3 square meals a day and breakfast in the morning?

    Canada News CBC News
    When Greg McRae was growing up, meal times at home were a regular thing. Breakfast would come right after he woke up. A sandwich or soup would be on the table for lunch around noon with his mom, dad and brother. Source
  • Canadian mobile speeds among world's fastest, OpenSignal data suggests

    Canada News CBC News
    Canadians may not be satisfied with the price they pay for wireless services, but new numbers out Wednesday suggest that they get some of the fastest data speeds in the world. According to wireless-mapping company OpenSignal, Canadian mobile users have access to the 12th-fastest data speeds in the world, out of a ranking of 87 countries. Source
  • Sean Cooper wiped out his mortgage in 3 years — and now he offers advice in new book

    Canada News CBC News
    In 2015, Sean Cooper did what many of us can only dream: he wiped out his mortgage in just three years — at age 30. It wasn't easy and once he achieved his goal, he took a break. Source